Community concerned, hopeful about Chinese purchase of Smithfield Foods

SMITHFIELD — Residents, town officials, business owners and their employees were shocked Wednesday to hear about plans to sell Smithfield Foods to a Chinese pork company.

Smithfield announced Wednesday that it was being sold to Shuanghui International Holdings Ltd. in a $4.7 billion cash offer. The announcement incited mixed reactions, including hopes for financial gains and concerns that foreign ownership would change the tight-knit community's culture.

Gregory, who is a financial adviser with Edward Jones, said he hopes in the long-term the sale could have a positive impact on jobs and the economy. It opens up a direct pipeline for exporting pork products to China, he said.

Gregory said he thinks Chinese owners saw a company with a good reputation and they've offered a fair price.

"(It) benefits China and it benefits Smithfield Foods," he said.

Not everyone shared Gregory's enthusiasm.

Up and down Main Street in downtown Smithfield, many expressed fears about changes the sale could bring, but few would share their concerns publicly, saying Smithfield Foods is such a large force in the community. Some said they were scared that talking could hurt their business or cost them their jobs.

Sterling White, 35, a life-long Isle of Wight County resident and Town of Smithfield laborer, said he's concerned the community will change.

"It's not going to be the same," he said. "Everybody grew up with everybody here…everybody works together."

Carolyn Burke, owner of the Smithfield Gourmet Bakery and Cafe, said she also wonders about the community's culture.

"It's a tight-knit community," she said. "It's a very close family."

Burke said she worries about the company's employees, as well as the other businesses Smithfield Foods owns in town, including the company's cafe and the Smithfield Inn.

"I hope that everything will go smoothly for everyone," she said.

Judy Winslow, Smithfield and Isle of Wight director of tourism, said she understands that residents and business owners have concerns, but thinks they'll eventually warm up to the change.

Winslow and others said after the initial shock of the news wore off, the sale made sense because Smithfield Foods has had an ongoing relationship with the Chinese for quite some time.

"We've heard rumors about this for years," she said.

Winslow said she's hopeful the sale will boost tourism and profits for area merchants.

"I'm hoping to welcome a lot of Chinese visitors," she said. "We hope that they'll…come here and spend money in our shops."

Winslow said she's heard the sale won't impact the quality of products, citing Smithfield's "from the farm to the truck" reputation.

U.S. Rep. J. Randy Forbes, R-Chesapeake, who represents the area, said he would be watching the new company's safety and quality.

"The potential purchase of Smithfield Foods by Chinese meat processor Shuanghui International Holdings warrants robust analysis and review to ensure the safety and security of America's citizens, as well as the preservation of national economic interests, food safety, and environmental standards," he said in a prepared statement.

Town Manager Peter Stephenson said he's seen other changes that have concerned him more, such as the closing of the Smithfield Packing Company in 2009. He said he expects the sale to have a small effect on employees and the community, who will come to see the Chinese company as just a new owner.

"It just caught everybody off guard," he said. "Nothing ever stays the same, change is the only constant."